Siguldas CMAS

Quarterly Report • May 24, 2012

Joint stock company SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA

INTERIM STATEMENT for 3 months of 2012

Index of Contents

	Page
Information on the Company	3
Profit or Loss Account	4
Balance sheet	5
Cash flow statement	7
Statement on changes in shareholders' equity	8
Notes to the Financial Statements	9
Report on Management Liability	22

Information on the Company

Company's name	SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA
Company's legal status	Joint stock company
	40003013295, Riga, 26 July 1991
Registration number, place and date	Registration in the Commercial Register on 19 June 2004
Legal address	"Kalnabeites"8, Sigulda parish, Sigulda area, LV-2150
Shareholders holding more than 5% of the total number of voting shares	SIA "Siguldas mākslīgās apsēklošanas stacija" (49.8%), registration No. 40003311954
Members of the Board	Nils Ivars Feodorovs, Chairman of the Board Sarmīte Arcimoviča, Member of the Board Valda Mālniece, Member of the Board
Members of the Council	Inita Bedrīte, Chairman of the Council Maija Beča, Deputy Chairman of the Council Ērika Everte, Member of the Council Solvita Arcimoviča, Member of the Council Jekaterina Kreise, Member of the Council
Reporting year	01.01.2012 – 31.03.2012
Auditors	Anita Sondore Sworn Auditor Certificate No. 129
	AUDITS A.S., SIA "Pīlādži", Līgatne parish, Līgatne area, LV-4108, Latvia Sworn Auditors' Commercial Company's license No. 27

Profit or loss account for the period ended 31 March 2012

	Note	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Net sales	3	178 392	179 023	253 829	254 727
Changes in stock of ready-made goods and unfinished products	4	13 853	6 431	19 711	9 150
Other operating income	5	1 951	1 703	2 776	2 424
Costs of materials:		(81 939)	(75 677)	(116 589)	(107 679)
a) raw materials and auxiliary costs of materials		(63 742)	(59 479)	(90 696)	(84 631)
b) other external costs		(18 197)	(16 198)	(25 893)	(23 048)
Personnel costs:	6	(71 785)	(79 900)	(102 140)	(113 688)
a) salaries for work		(56 354)	(61 610)	(80 184)	(87 663)
b) state social insurance compulsory contributions		(12 649)	(14 611)	(17 997)	(20 790)
c) other social insurance costs		(2 782)	(3 679)	(3 959)	(5 235)
Write-off of assets and values:		(10 587)	(9 701)	(15 064)	(13 803)
a) depreciation of fixed assets and amortization of intangible assets		(10 587)	(9 701)	(15 064)	(13 803)
Other operating costs	7	(9 862)	(10 363)	(14 032)	(14 745)
Other interest income and similar income	8	1 320	470	1 878	669
Interest payments and similar costs	9	(570)	(1 112)	(811)	(1 583)
Profit or losses before taxes		20 773	10 874	29 558	15 472
Enterprise income tax for the reporting year		(3 417)	(2 274)	(4 862)	(3 236)
Other taxes	10	(1 119)	(1 111)	(1 593)	(1 581)
The profit or loss for the year		16 237	7 489	23 103	10 655
Equity per 1 share (EPS)	22	0.038	0.018	0.055	0.025

Notes on pages 9 to 21 form an integral part of these financial statements.

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Chairman of the Board Member of the Board Member of the Board

Balance sheet as at 31 March 2012

Assets	Note	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Long-term investments
Fixed assets
Land parcels, buildings and constructions and perennial plantings		122 202	136 939	173 877	194 846
Equipment and machinery		54 830	30 102	78 016	42 832
Other fixed assets and inventory		5 643	9 386	8 030	13 355
Fixed assets total	12	182 675	176 427	259 923	251 033
Investment properties	13	95 000	95 000	135 173	135 173
Biological assets		44 082	43 672	62 723	62 140
Long-term financial investments
Investments in capital of associated companies	14	58 575	47 372	83 345	67 404
Other securities and investments	15	480	480	683	683
Long-term financial investments total		59 055	47 852	84 028	68 087
Long-term investments total		380 812	362 951	541 847	516 433
Current assets
Stock
Raw materials, basic materials and auxiliary materials		7 735	10 286	11 005	14 635
Ready-made goods and goods for sale	16	344 412	332 072	490 055	472 496
Prepayments for goods		111	197	157	280
Stock total		352 258	342 555	501 217	487 411
Receivables
Trade receivables	17	90 322	137 705	128 517	195 935
Other receivables	18	7 325	1 758	10 421	2 502
Prepaid expenses	19	55	39	79	56
Receivables total		97 702	139 502	139 017	198 493
Short-term financial investments
Other securities and shareholding in
capitals	20	21 739	21 579	30 933	30 705
Short-term financial investments total		21 739	21 579	30 933	30 705
Cash	21	166 987	156 013	237 601	221 986
Current assets total		638 686	659 649	908 768	938 595
Assets total		1 019 498	1 022 600	1 450 615	1 455 028

Balance sheet as at 31 March 2012

Shareholders' equity and liabilities	Note	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Shareholders' equity
Share capital	22	422 440	422 440	601 078	601 078
Retained earnings:
Retained earnings carried forward from previous years		519 382	489 491	739 014	696 484
Retained earnings of the reporting year		16 237	7 489	23 103	10 655
Shareholders' equity total		958 059	919 420	1 363 195	1 308 217
Provisions
Other provisions	23	8 823	16 908	12 555	24 058
Provisions total		8 823	16 908	12 555	24 058
Payables
Long-term payables
Deferred tax liabilities	24	3 325	1 318	4 731	1 875
Long-term payables total		3 325	1 318	4 731	1 875
Short-term payables
Prepayment received from customers		180	10 190	257	14 499
Trade payables		15 764	39 354	22 430	55 995
Taxes and social insurance payments	25	25 077	25 482	35 680	36 258
Other payables		8 270	9 928	11 767	14 126
Short-term payables total		49 291	84 954	70 134	120 878
Payables total		52 616	86 272	74 865	122 753
Shareholders' equity and liabilities total		1 019 498	1 022 600	1 450 615	1 455 028

Notes on pages 9 to 21 form an integral part of these financial statements.

Chairman of the Board Member of the Board Member of the Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece

Cash flow statement for the period ended 31 March 2012

	Note	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Cash flow from operating activities
Income from sale of goods and provision of services		222 986	152 430	317 280	216 888
Payments to suppliers, employees, other expenses arising from basic operations		(206 837)	(190 969)	(294 302)	(271 725)
Gross cash flow from basic operations		16 149	(38 539)	22 978	(54 837)
Expenses for enterprise income tax payments		(3 417)	(2 274)	(4 862)	(3 236)
Net cash flow from operating activities		12 732	(40 813)	18 116	(58 073)
Cash flow from investing activities
Purchase of capital shares of associated company		(1 972)	-	(2 806)	-
Purchase of fixed assets and intangible investments		(718)	(12 947)	(1 022)	(18 422)
Net cash flow from investing activities		(2 690)	(12 947)	(3 828)	(18 422)
Cash flow from financing activities
Subsidies received as a state support		1 951	1 703	2 776	2 424
Net cash flow from financing activities		1 951	1 703	2 776	2 424
Result of foreign exchange rate fluctuations		(13)	(150)	(18)	(213)
Increase/ decrease of cash and its
equivalents		11 980	(52 207)	17 046	(74 284)
Cash and its equivalents at the beginning of the period		155 007	208 220	220 555	296 270
Cash and its equivalents at the end of the
period	21	166 987	156 013	237 601	221 986

Notes on pages 9 to 21 form an integral part of these financial statements.

Chairman of the Board Member of the Board Member of the Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece

Statement on changes in shareholders' equity for the period ending 31 March 2012

	Share capital	Retained earnings carried forward from	Retained earnings for the reporting year	Shareholders' equity total
	LVL	previous years LVL	LVL	LVL
31.12.2010	422 440	454 939	34 552	911 931
Profit for 2010 transferred to retained earnings of previous years	-	34 552	(34 552)	-
Retained earnings for the reporting year	-	-	7 489	7 489
31.03.2011	422 440	489 491	7 489	919 420
31.12.2011	422 440	451 471	67 911	941 822
Profit for 2011 transferred to retained earnings of previous years Retained earnings for the reporting year	- -	67 911 -	(67 911) 16 237	- 16 237
31.03.2012	422 440	519 382	16 237	958 059

	Share capital	Retained earnings carried forward from previous years	Retained earnings for the reporting year	Shareholders' equity total
	EUR	EUR	EUR	EUR
31.12.2010	601 078	647 320	49 164	1 297 562
Profit for 2010 transferred to retained earnings of previous years	-	49 164	(49 164)	-
Retained earnings for the reporting year	-	-	10 655	10 655
31.03.2011	601 078	696 484	10 655	1 308 217
31.12.2011	601 078	642 386	96 628	1 340 092
Profit for 2011 transferred to retained earnings of previous years Retained earnings for the reporting year	- -	96 628 -	(96 628) 23 103	- 23 103
31.03.2012	601 078	739 014	23 103	1 363 195

Notes on pages 9 to 21 form an integral part of these financial statements.

Chairman of the Board Member of the Board Member of the Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece

(1) General information on the Company

AS "Siguldas ciltslietu un mākslīgās apsēklošanas stacija" (hereinafter - the Company) was registered in the Register of Enterprises of the Republic of Latvia on 26 July 1991 and was reregistered in the Commercial Register of the Republic of Latvia on 19 June 2004.

The Company's basic activities are agriculture and the types of business are as follows:

• Production and sale of agricultural products high-quality breeding animals semen,
• making of milk analyses,
• evaluation of cow exterior,
• artificial insemination of cows,
• inspection of immune-genetic origin of cattle,
• milk recording data processing,
• animals breeding organization.

(2) Significant accounting principles

Underlying principles of preparation of the Financial Statements

The Company's Financial Statements have been prepared according to the Law On Annual Reports of the Republic of Latvia. The Profit or Loss Account was prepared based on the period costs method. The Cash Flow Statement was prepared according to the direct method.

Accounting principles used

The items of the Financial Statements have been evaluated according to the following accounting principles:

• It is assumed that the Company will be a going concern;
• The same evaluation methods have been used, which were used in the previous year;
• Evaluation was done with sufficient prudence:
  • The Financial Statements include solely the profit gained until the balance sheet date,
  • All expected risk amounts and losses have been taken into account, which occurred during the reporting year or in previous years, also if they were known during a certain period of time between the balance sheets date and the day of preparing the Financial Statements,
  • All value decreasing and depreciation amounts have been taken into account irrespective whether the reporting year was closed with profit or loss;
• reporting year related income and costs were recognized irrespective of the payment date and the date of receipt or issuance of invoice. Costs have been agreed with the income in the reporting period;
• components of asset and liabilities items have been recognized separately;
• the opening balance of the reporting year agrees with the closing balance of the previous year;
• all items have been recognized, which materially influence assessment or decision-making process of the users of the annual report, insignificant items are merged and they are detailed in the Appendix;
• operating transactions in the reporting year have been recognized in the Financial Statements by taking into account their economic substance and contents, rather than legal form.

Financial instruments

Fair value of financial assets and liabilities

Fair value of financial assets and liabilities reflect the amount, for which it is possible to exchange assets or perform liabilities in a deal between well informed, interested and financially independent persons. If in the Company's management opinion, fair value of financial assets and liabilities materially differs from the value recognized in the balance sheet, then the fair value of these assets and liabilities is recognized in the Notes to the Financial Statements.

Financial risks management

Credit risk

The Company's management has developed credit policy, which is constantly controlled. Client evaluation is done for all customers above a fixed amount. The Company cooperates with clients who have proper credit assessment.

Currency risk

Based on the current structure of Company's financial assets and liabilities held in foreign currencies, the currency risk is not material.

Reporting period

The reporting period is 3 months from 1 January to 31 March 2012.

Revaluation of foreign currencies

The Company's functional currency and the currency used in the Financial Statements is the Republic of Latvia national currency Lat (LVL). All transactions in foreign currencies are translated to Lats according to the exchange rate set by the Central Bank of Latvia on the day of making the respective transaction.

Monetary assets and liabilities, which are expressed in foreign currency, are translated to Lats to the exchange rate set by the Central Bank of Latvia on the last day of the reporting year.

	31.03.2012	31.03.2011
EUR	0.702804	0.702804
USD	0.528	0.499

Currency exchange rate differences arising from settlements in currencies or when recognizing assets and liabilities y using currency exchange rates, which differ from the initial currency exchange rates used for accounting of transactions, are recognized in the profit or loss account in net value.

Recognition of income

Income is recognized according to the conviction about the Company's possibility to gain economic benefit and in the amount, in which it is possible to state it, less value added tax and sales-related discounts. When recognizing income, also the following provisions are taken into account.

Sale of goods

Income is recognized when the Company has transferred to the purchaser major risks and indemnities related to the title of goods.

Provision of services

Income from services is recognized in the period when the services are provided.

Penalty and delay charges

Income from penalty and delay charges is recognized at the moment of their receipt.

Interest

Income is recognized according to the respective period of time.

Long-term and short-term items

Long-term items include amounts whose receipt, payments or write-off terms are due later after the end of the respective reporting year. Amounts, which are receivable, payable or written off during the year, are recognized in short-term items.

Leasing transactions

Financial leasing

In cases when fixed assets are purchased on the conditions of financial leasing and the related risks and return are taken over, these fixed assets are recognized in the value, for which they could be purchased with immediate payment. Leasing interest payments and similar payments are included in the profit or loss account of that period when they occurred.

Intangible assets and fixed assets

In the balance sheet, all intangible assets and fixed assets are reflected at their purchase prices, less depreciation. Depreciation is calculated from the first date of the next month after their commissioning and finished on the first date of the subsequent month after it is excluded from fixed assets. Depreciation is calculated according to the straight line method and is written off during the useful life time of respective fixed assets by choosing the following annual depreciation rates as fixed by the management:

Intangible assets:

Licenses	5 years
Fixed assets:
Buildings and constructions	20 years
Equipment and machinery	5, 6 and 7 years
Computer hardware and communication equipment	5 years
Inventory and tools	3 and 5 years
Other fixed assets	2 and 3 years

Balances of fixed assets have been counted in the annual count of fixed assets.

Investment properties

Investment properties – land in possession of the stock company, which market value is expected to grow. Investment properties have been filed according to their purchase value. No later than on the end of the year of account the investments properties are being revalued according to their real market value considering any other activities related to particular property. Any changes in the market value of the investments properties are being shown in the profit and loss account.

Biological assets

Biological assets are assets, which are characterized by regeneration and changes in value as a result of growth. The Company in biological assets includes breeding animals – bulls, which are kept for getting agricultural products for sale. Biological assets are recognized in the purchase value.

Stock

Stock is recognized in the lowest cost or net sales value. All stock is assessed by using the average weighted method.

Net sales value is the sales price of stock fixed during normal Company's operations, less the stock completion and selling costs. In cases when the stock net selling value is lower than their cost price, provisions are made for these stocks for decrease of their value down to the net sales value.

All direct costs, which are related to production of breeding animals - bull semen, during the year are booked in the profit or loss account and are adjusted at the end of the year when evaluating stocks according to the lowest sales value or cost price and including them in stocks as "Ready-made goods and goods for sale".

Trade receivables and other receivables

Receivables are recognized in the balance sheet in the amortized value, less provisions for doubtful and bad debts. Provisions for doubtful and bad debts are made in cases when there is objective evidence to the fact that the Company will not be able to receive the debts in full value according to the initially fixed repayment dates. Provisions for doubtful and bad debts are the difference between the amortized purchase value of receivables and the recoverable value. The recoverable value of receivables is the current value of planned cash flow.

Provisions

Provisions are recognized when the Company has liabilities (legal or substantial) due to some past event and there is a probability that the performance of these liabilities will require outflow of economic resources from the Company, and the amount of liabilities can be fairly assessed.

Corporate income tax

Corporate income tax for the reporting period consists of the tax calculated for the reporting period and deferred tax. Corporate income tax is recognized in the profit or loss account.

Calculated tax

The tax calculated for the reporting period has been calculated in compliance with the requirements of the Law "On Corporate Income Tax" by fixing the taxable income and applying the statutory rate of 15%.

Deferred tax

Deferred corporate income tax is calculated for temporary time differences, which are caused due to differences in the value of assets and liabilities in the financial statements (book-keeping) and its value for tax purposes. The mentioned differences are mainly due to different fixed assets depreciation rates applied in tax and financial accounting, provisions made and losses transferred according to the Company's income tax declaration. Deferred tax is calculated by applying the statutory tax rate 15%.

Subsidies

Amounts, which are received as a state support for agricultural, i.e., for covering of expenses for maintaining highquality breed bulls, are included in the income of that reporting period when they are received.

Use of assumptions

When preparing the financial statements, the Company's management has to make calculations and assumptions, which impact recognition of assets and liabilities included in the financial statements as at the day of preparing the financial statements, as well as the income and expenses recognized in the specific reporting period. Management has made profit or loss assessment and considers that the financial statements reflect the true financial condition based on all currently available information.

(3) Net sales

Sales include income gained during the year from the Company's basic activities – sales of products and provision of services without value added tax and less discounts.

Type of operations	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Livestock sperm	88 814	82 988	126 371	118 081
Milk laboratory services	47 428	47 376	67 484	67 410
Treatment of supervisory data	18 182	18 334	25 871	26 087
Cow exterior appraisal	766	11 060	1 090	15 737
Artificial insemination of livestock	6 082	4 521	8 654	6 433
Immune-genetic laboratory services	1 092	2 717	1 554	3 866
Other income	16 028	12 027	22 805	17 113
	178 392	179 023	253 829	254 727

Distribution of net sales according to the geographical markets:

	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Latvia	178 392	179 023	253 829	254 727
	178 392	179 023	253 829	254 727

Earnings from agricultural activities represented in net sales:

	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Earnings from agricultural activities	178 392	179 023	253 829	254 727
	178 392	179 023	253 829	254 727

(4) Changes in stock of ready-made goods and unfinished products

	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Changes in sperm stock value	19 388	9 728	27 586	13 842
Changes in stud bull herd value	(5 535)	(3 297)	(7 875)	(4 692)
	13 853	6 431	19 711	9 150
(5) Other operating income
	2012 LVL	2011 LVL	2012 EUR	2011 EUR
State support for agricultural	1 951	1 703	2 776	2 424
	1 951	1 703	2 776	2 424

(6) Personnel costs

	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Salaries for work	53 358	61 610	75 921	87 663
State social insurance contributions	12 649	14 611	17 997	20 790
Health insurance	2 522	2 670	3 589	3 799
Life insurance with cash value accrual	2 996	-	4 263	-
Other costs	260	1 009	370	1 436
	71 785	79 900	102 140	113 688

(7) Other operating expenses

	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Insurance payments	1 078	1 124	1 534	1 599
Selling expenses	973	1 054	1 384	1 500
Company's management and administrative
expenses	6 629	6 910	9 432	9 832
Other costs	1 182	1 275	1 682	1 814
	9 862	10 363	14 032	14 745

(8) Other interest income and similar income

	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Income from securities	51	27	72	39
Income from foreign currency exchange rate
fluctuations	428	275	609	391
Recovered doubtful and bad debts	841	168	1 197	239
	1 320	470	1 878	669

(9) Interest payments and similar costs

	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Employees' leisure and other costs not connected with operating activities	570	1 112	811	1 583
	570	1 112	811	1 583
(10) Other taxes	2012	2011	2012	2011
Real estate tax	LVL	LVL	EUR	EUR
	1 119 1 119	1 111 1 111	1 593 1 593	1 581 1 581

(11) Intangible assets

	Concessions, patents, licenses, trade marks and similar rights	Total	Total
	LVL	LVL	EUR	EUR
Initial value
31.12.2011	720	720	1 024	1 024
Purchased	-	-	-	-
Disposed	-	-	-	-
31.03.2012	720	720	1 024	1 024
Accrued depreciation
31.12.2011	718	718	1 022	1 022
Calculated depreciation	-	-	-	-
Depreciation of excluded investments	-	-	-	-
31.03.2012	720	720	1 024	1 024
Book value as at 31.12.2011	-	-	-	-
Book value as at 31.03.2012	-	-	-	-

(12) Report on movement of fixed assets

	Land, buildings and constructions	Technological equipment and machinery	Other fixed assets	Total
	LVL	LVL	LVL	LVL
Initial value
31.12.2011	255 107	383 176	83 668	721 951
Purchased	-	-	719	719
Disposed	-	-	(342)	(342)
31.03.2012	255 107	383 176	84 045	722 328
Accrued depreciation
31.12.2011	129 644	322 085	77 679	529 408
Calculated depreciation	3 261	6 261	1 065	10 587
Depreciation of excluded fixed
assets	-	-	(342)	(342)
31.03.2012	132 905	328 346	78 402	539 653
Book value as at 31.12.2011	125 463	61 091	5 989	192 543
Book value as at 31.03.2012	122 202	54 830	5 643	182 675

As at 31 March 2011, the cadastral value of real estate – land and constructions - was LVL 113 853 As at 31 March 2012, the cadastral value of real estate – land and constructions - was LVL 110 291

	Land, buildings and constructions	Technological equipment and machinery	Other fixed assets	Total
	EUR	EUR	EUR	EUR
Initial value
31.12.2011	362 985	545 210	119 049	1 027 244
Purchased	-	-	1 023	1 023
Disposed	-	-	(486)	(486)
31.03.2012	362 985	545 210	119 586	1 027 781
Accrued depreciation
31.12.2011	184 468	458 285	110 527	753 280
Calculated depreciation	4 640	8 909	1 515	15 064
Depreciation of excluded fixed
assets	-	-	(486)	(486)
31.03.2012	189 108	467 194	111 556	767 858
Book value as at 31.12.2011	178 517	86 925	8 522	273 964
Book value as at 31.03.2012	173 877	78 016	8 030	259 923

As at 31 March 2011, the cadastral value of real estate – land and constructions - was EUR 161 998 As at 31 March 2012, the cadastral value of real estate – land and constructions - was EUR 156 930

(13) Investment properties

	Land	Total	Land	Total
	LVL	LVL	EUR	EUR
Book value as at 31.12.2010	95 000	95 000	135 173	135 173
Increase/decrease of value due to revaluation	-	-	-	-
Book value as at 31.03.2011	95 000	95 000	135 173	135 173
Book value as at 31.12.2011	95 000	95 000	135 173	135 173
Increase/decrease of value due to revaluation	-	-	-	-
Book value as at 31.03.2012	95 000	95 000	135 173	135 173

(14) Investments in capital of associated companies

		2012			2011
	% from total share capital	LVL	EUR	% from total share capital	LVL	EUR
Ltd "Animal Breeders Association of Latvia" (SIA "Latvijas šķirnes dzīvnieku audzētāju savienība" )
Legal address: Republikas laukums 2, Rīga,
LV-1010, Latvia	36.0	58 575	83 345	26.6	47 372	67 404
		58 575	83 345		47 372	67 404

(15) Other securities and investments

	LVL	EUR
Purchase value as at 31.12.2011	480	683
Book value as at 31.12.2011	480	683
Purchase value as at 31.03.2012	480	683
Book value as at 31.03.2012	480	683

(16) Ready-made products and goods for sale

	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Bull semen	337 632	326 369	480 407	464 381
Other goods for sale	6 780	5 703	9 648	8 115
	344 412	332 072	490 055	472 496

(17) Trade receivables

	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Accounting value of trade receivables	93 084	144 255	132 447	205 255
Provisions for doubtful trade receivables	(2 762)	(6 550)	(3 930)	(9 320)
	90 322	137 705	128 517	195 935

(18) Other receivables

	2012 LVL	2011 LVL	2012 EUR	2011 EUR
VAT for received goods and services	1 107	867	1 575	1 234
Overpayment of taxes	5 088	-	7 240	-
Other receivables	1 130	891	1 606	1 268
	7 325	1 758	10 421	2 502

(19) Prepaid expenses

The item recognizes the costs made during the reporting year, but referring to the next reporting periods.

	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Advertising costs	36	16	51	23
Insurance	15	18	21	26
Press subscription	4	5	7	7
	55	39	79	56

(20) Other securities and shareholding in capitals

SEB Lats reserve fund	Number 15 044	2012 Market price 1.44503	Amount LVL 21 739	Number 15 044	2011 Market price 1.43440	Amount LVL 21 579
			21 739			21 579
		2012			2011
	Number	Market price	Amount EUR	Number	Market price	Amount EUR
SEB Lats reserve fund	15 044	2.05609	30 933	15 044	2.04097	30 705
			30 933			30 705

Money market fund shares have no guaranteed interest rate. In 2012 the profitability was 0.94 %. Exclusion of money market fund shares is carried out at the Company's request.

(21) Cash in LVL and foreign currencies according to the LCB exchange rate

Break-down of cash according to currencies:		2012		2011
		Currency	LVL	Currency	LVL
Cash in hand	LVL	-	2 920	-	2 380
Cash in bank	LVL	-	163 329	-	152 251
Cash in bank	EUR	1 051	738	1 966	1 382
			166 987		156 013

Break-down of cash according to currencies:		2012		2011
		Currency	EUR	Currency	EUR
Cash in hand	LVL	2 920	4 154	2 380	3 386
Cash in bank	LVL	163 329	232 396	152 251	216 634
Cash in bank	EUR	-	1 051	-	1 966
			237 601		221 986

(22) Share capital

The Company's shares are quoted on NASDAQ OMX Riga Stock Exchange's second listing. The Company's share capital consists of shareholders' investments. The total number of shares is 422 440, the nominal value per share is 1 Lat.

	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Ordinary common shares with voting rights	421 440	421 440	599 655	599 655
Shares owned by the Board without voting rights	1 000	1 000	1 423	1 423
	422 440	422 440	601 078	601 078

421440 shares or 99.8% of the share capital are bearer shares, which give equal rights to receive dividends, receipt of liquidation quota and voting rights in the Shareholders' Meeting.

1000 shares or 0.2% of the share capital, which are not included in the regulated market, are personnel registered shares, which may be obtained only by Members of the Board, and they give equal rights only to receipt of dividend and liquidation quota.

There are no share alienation restrictions, nor the necessity to receive the Company's or other shareholders' consent for alienation of shares.

There are no restrictions on voting rights, nor any other similar restrictions.

Profit per share

Profit per one share is calculated by dividing the profit of the reporting period with the average weighted number of shares during the year.

	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Profit of the reporting period	16 237	7 489	23 103	10 655
Average weighted number of shares during the
year	422 440	422 440	422 440	422 440
	0.038	0.018	0.055	0.025

(23) Other Provisions

	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Provisions for vacations	8 823	16 908	12 555	24 058
	8 823	16 908	12 555	24 058
(24) Provisions for deferred tax
	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Temporary differences in fixed assets
depreciation	30 992	25 694	44 098	36 559
Provisions for vacations	(8 823)	(16 908)	(12 555)	(24 058)
Total temporary differences	22 169	8 786	31 543	12 501
Deferred tax provisions at the beginning of
the period	3 325	1 318	4 731	1 875
Increase or decrease	-	-	-	-
Deferred tax provisions at the end of the period	3 325	1 318	4 731	1 875

(25) Taxes and social insurance payments

Tax type	Balance as at 31.12.2011 LVL	Calculated in 2012 LVL	Paid in 2012 LVL	Balance as at 31.03.2012 LVL
Corporate income tax	(5 088)	3 417	(3 417)	(5 088)
Value added tax	5 031	28 068	(18 562)	14 537
Social insurance contributions	9 017	18 970	(21 365)	6 622
Personal income tax	5 382	10 965	(12 474)	3 873
Real estate tax	-	1 119	(1 119)	-
Nature resource tax	33	35	(33)	35
Business risk duty	9	27	(26)	10
	14 384	62 601	(56 996)	19 989
Including:	2011			2012
	LVL			LVL
Tax overpaid	(5 088)			(5 088)
Tax due	19 472			25 077

Tax type	Balance as at	Calculated in	Paid in	Balance as at
	31.12.2011	2012	2012	31.03.2012
	EUR	EUR	EUR	EUR
Corporate income tax	(7 240)	4 862	(4 862)	(7 240)
Value added tax	7 158	39 937	(26 411)	20 684
Social insurance contributions	12 830	26 992	(30 400)	9 422
Personal income tax	7 658	15 602	(17 749)	5 511
Real estate tax	-	1 593	(1 593)	-
Nature resource tax	47	49	(47)	49
Business risk duty	13	38	(37)	14
	20 466	89 073	(81 099)	28 440
Including:	2011			2012
	EUR			EUR
Tax overpaid	(7 240)			(7 240)
Tax due	27 706			35 680
Tax overpaid declared in position "Other receivables"

(26) Number of persons employed by the Company

	2012	2011
Average number of persons employed during the reporting year	35	40

(27) Information on remuneration to Council, Board and Managements Members

	2012 LVL	2011 LVL	2012 EUR	2011 EUR
Council Members' salaries for work, including state social insurance contributions Board Members' salaries for work, including	1 842	1 654	2 621	2 354
state social insurance contributions	7 036	7 147	10 011	10 169
Total remuneration to management members	8 878	8 801	12 632	12 523

There are no special regulations worked out, which would regulate election of Board Members, changes in the composition of the Board and amending of the Articles of Association.

All Board Members have equal Company's representation rights. The Chairman of the Board represents the Company separately, but other Board Members can represent the Company only both together.

There is no agreement signed between the Company and the Board Members, which provides any compensation.

Report on Management Liability

According to the information being at our disposal, the Interim Financial statement for three months of 2012 have been prepared according to the effective requirements of legislative enactments and provide a true and fair view about the joint stock company's "Siguldas ciltslietu un mākslīgās apsēklošanas stacija" assets, liabilities, financial condition and profit.

Interim Financial statement for three months of 2012 have not been audited by Sworn Auditor.

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece

Chairman of the Board Member of the Board, Head of Production and

Marketing Department

Member of the Board, Head of Financial and Accounting Department